report on marketing environment

Information in Marketing Planning - Paper and Paperboard Industry. The information generated from a SWOT analysis can be useful in its own right, or as input into other tools for analyzing the portfolio. tesco pestel pestle Note that there are numerous ways to measure the model, and the most appropriate method will depend on the context of the specific planning situation. The differences are small between supply and demand as well as between industrial customers and competitors. However, knowledge management is not only about computers, connectivity, and databases. Business/marketing information specialists and planners, especially in the paper industry, may see marketing channels and transportation issues as a given, as they rated these issues to be much less important than all other information environment factors in this study. Porter gives a long, detailed list of information to be collected in competitor analysis. Harnessing the Power of Intellectual Capital. Our Information Environment Model is portrayed in Figure 3-3, where it can be seen in the context of marketing planning. That value is offered in a form of value proposition composed of product, availability, enhanced services and marketing communication (see section 2.5). The Beck Group in Portland, Oregon is an example of a consultancy that does benchmarking for forest industry companies. pharmaceutical distribution channel process pharmacy Slow industry growth companies must steal market share from competitors rather than relying on overall market growth. For example, some companies may focus on their competition while drafting a strategic plan, while others may focus on customer information. Lack of differentiation or switching costs if products within a sector are similar, buyers are likely to make product choices based simply on low price; this naturally creates significant price competition among suppliers. The ultimate goal should be to keep customers satisfied the best competitive advantages are those appreciated by customers. In a low-growth market, the only road to growth was to take markets away from the competition. PEST stands for political, economic, social and technological. Chapter 1 : The Context of the Forest Industry and its Markets, Chapter 2: Understanding Forest Products Marketing, Chapter 3: The Marketing Environment, an Information Approach, Chapter 4: Strategy and Strategic Planning, Chapter 7: Putting together a Marketing Plan. This emphasizes the importance of end-use information. The only difference between paper and wood industries is that the information regarding distribution systems is more important for the wood industry. The type of information most critical in this dynamic environment is information about change change in the environment, change among competitors, change in customer behavior, and so forth. Information dealing with both Macro and Micro Environments is needed for strategic marketing decisions. The forms of secondary information sources vary from newspaper articles and on-line, up-to-date data to costly research reports conducted by private consulting companies. One example of a critical type of information might be a given products stage of development in the marketplace. Similar issues also hold for transportation systems. The project follows the procedures of strategic marketing presented earlier in this book. For example, customer-oriented marketing is needed when demand is slowing or when the needs of customers become more specialized. In wood industries country bound information is considered more important. The Macro Environment contains the categories demand, supply, and other macro environment. Demand and supply of company products are naturally very important factors in marketing planning. are especially important when a company plans a new market entry. Department of Forest Economics. 2004. Consulting company that provides a wide range of statistics as well as research reports on wood and paper markets. Weekly newsletters documenting price trends. Department of Forest Economics. World paper markets up to 2005. Some industries are known to be more highly competitive than others. Publicly traded companies have an annual report and often a sustainability report. Want to adapt books like this? His concepts became popular after the post-World War II economic boom, when inflation in developed nations was a significant problem and economic growth was very low. The forest industry has seen a large move toward disintermediation. Recall that the information environment of forest products marketing can be divided into two major categories: the Macro and Micro Environments (Figure 3-3). How can efficient management of information and knowledge lead to enhanced performance and competitive advantage? It is often difficult for the marketing researcher or planner, especially a beginner, to know what sort of information should be collected. Demand for a product that has many substitutes is said to be elastic, since the consumer can easily purchase a different product if price increases (e.g., commodity softwood lumber). The other macro environment category contains those factors traditionally considered in a PEST analysis. Focused on building products retailers in the west. This relative ease of entry resulted in a highly competitive marketplace for sawmillers. SWOT analysis (strengths, weaknesses, opportunities, threats) is a popular method used in strategic planning. Different categories and types of information may be emphasized depending on the focus of the company. This chapter provides some examples of market information sources that are especially relevant to the context of markets in the United States. Thus, the distribution system is considered part of the marketing environment. The customer block in the IEM is developed into a detailed framework for the customer survey (Figure 3-4). This has been the case for many paper companies that see the lumber business as a necessary but not attractive component of their business portfolio. 4(2):34-8. The SWOT analysis illustrates how important it is for a company to be aware of its internal strengths and weaknesses, as well as its external opportunities and threats. Harvard Business School Press. He has had a dramatic impact on the study and understanding of strategy during the last three decades. How do changes in marketing practice change the relative importance of different types of information to the marketing manager? Information concerning the Micro Environment is a major factor when planning marketing structures, functions, and action plans. This includes direct competitors that have similar strategies and indirect competitors that offer substitute products, Customer information, including the customers markets and their strategic challenges, Managing information, knowledge, and company experiences, Using knowledge to enhance organizational performance, Future demand in the medium term (1-3 years), Future demand in the long term (over 3 years), Future demand in the short term (under 1 year), Future supply by product types (e.g. 1997. Kotler, P. 2000. For instance, a new paper mill costs in excess of $1 billion; this level of investment means market entry is almost impossible for most companies. In large forest industry (paper industry) companies, the logistics department takes care of all transportation issues in the company and marketing people have very little involvement. To emphasize environmental issues an extra E is sometimes added, resulting in PESTE. This meant that companies accustomed to growing along with the market were suddenly faced with the need to gain a more in-depth understanding of their competitors. 5 pp. Depending on their marketing philosophy, companies can emphasize competition and approach competitors in different ways. Jaakko Pyry Consulting Oyj. The model has been created, tested, and used in numerous market analyses, both at the University and company level. The time horizons, especially of the paper business, have shortened resulting in an emphasis on medium-term supply information. In economics, demand is the quantity of goods or services customers are willing to buy at a certain price, in a certain market at a certain time. Prentice Hall Europe. In market economies competition is a basic principle underlying markets and influencing all the operations of various marketplace players. The technological environment includes technological norms, regulations, standards, etc. Strategic planning in this situation typically emphasizes product and market decisions. The list describes the order of importance of distribution system information in the Finnish paper and paperboard industry (opinions of business/marketing information specialists).[14]. Aho, J. Strategic Marketing in the Global Forest Industries, Center for International Trade in Forest Products, Next: Chapter 4: Strategy and Strategic Planning, Creative Commons Attribution-NonCommercial 4.0 International License. If the IEM is not sufficiently detailed for constructing customer surveys, a separate frame of reference appropriately describing customer behavior is necessary. It can also be criticized because it emphasizes beating the competition rather than satisfying customer needs. In these projects market analyses have produced market and customer information to be used in marketing plans structured according to the IMMP. Boston, Massachusetts. As an example of secondary information sources in paper and wood product marketing, we have classified the sources into the following five categories: Table 3-1 provides examples of information sources in each of the above categories. There are few competitive substitute products. In our current, information-rich society, the business environment is changing at an accelerating rate. Since the 1990s the importance of customer decisions in strategic planning has clearly increased. As marketing of forest products has become more customer-oriented, grades and end-uses of products have become more sophisticated. Competitive Strategy, Techniques for Analyzing Industries and Competitors. In this case we assume that the industrial customer is customer-oriented and has a good understanding of its customer requirements. The time horizon of strategic marketing planning has shortened, making medium-term demand information more important. This sort of information is also used in the policy planning of the whole forest sector. Benchmarking is when a company analyzes its competitors to find best business procedures leading to best performance. 41(3):125-145. The nature of marketing planning and the need for information follow the development of market demand. Johnson and Scholes[1] suggest that a SWOT analysis is much more than creating a laundry list of strengths, weaknesses, opportunities, and threats. These can then be placed into a matrix showing where the company is strong and where it is weak in relation to the external issues. Individual customers and competitors are the likely targets of the research. One way paper companies are trying to deal with buyer power is by becoming bigger themselves in order to effectively supply worldwide buyers.

John Wiley & Sons, Inc. New York, New York. 1998. There are few suppliers and the supplying industry is more concentrated than the industry to which it sells. When knowledge is emphasized as an important resource for a company, it is the role of marketing to assure that the company not only possesses sufficient information about the marketing environment, but also makes this information available in a user-friendly format. Secondary data is not specifically produced for marketing planning, but can be useful nevertheless. The level of interest in information within a company varies according to its marketing philosophy and marketing focus. Knowledge management has been defined in various ways in the literature, but most definitions contain several common factors, including: Information technology provides a pipeline and storage system for the exchange of knowledge. In more sophisticated and fragmented markets, it is more important to know the future changes in supply of various product types than the general development of supply. The buyer faces few switching costs. Conversely, the buyers power is enhanced if the seller faces high switching costs. Judicial regulation connected to a companys operations is called the legal environment. The reason for this may be that construction, which is the biggest end-use area of wood industry products, is heavily regulated in all developed markets. Various blocks of the frame can be measured as follows[18]: Once this detailed way of measuring has been created, the data collection phase is rather straight forward since measurement was designed to produce the specific information needed in the planning project.

People Management. Those intermediaries that have been left out in the disintermediation process will be anxious to support new entrants.
Page not found — Lebanon County Legal Journal


The page you requested was not found. You might want to read the following interesting articles.